Actuarial Standards Board Standard of Practice 4

The Actuarial Standards Board releases Standard of Practice 4 governing measuring of pension obligations and determining pension plan cost.

Document ExcerptDisclosure of Rationale for Changes in Cost or Contribution Allocation Procedure Section 4.1(t) contains new disclosure requirements for a change in the cost or contribution allocation procedure. Assessment of Contribution Allocation Procedure or Funding Policy Section 4.1(m) contains new disclosure requirements related to the implications of the contribution allocation procedure or plan sponsor’s funding policy on future expected plan contributions and funded status. Prescribed Assumptions or Methods The definition of prescribed assumption or method (section 2.16 in the current standard) has been revised to address prescribed assumptions or methods set by another party or set by law (sections 2.19 and 2.20). 

Key changes from the version of ASOP No. 4 adopted May 2011 include the following:



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